Ahmedabad: Launching a veiled attack on Congress, Gujarat Chief Minister Narendra Modi on Friday accused the party of running a "smear campaign" as part of a "conspiracy" to shift state industries to neighbouring Maharashtra.

Congress has been targetting Modi for favouring industries in the state at the cost of common people and farmers. The opposition party has also accused Modi of favouring a few groups of industries.

"Everyday falsehood is spread against Gujarat government over industrial development. A sustained smear campaign is being carried out under a well thought conspiracy to shift the industries of Gujarat to neighbouring Maharashtra," Modi said in Ankleshwar town without naming Congress.

"It is not just a part of a political agenda to belittle Gujarat's industrial march but a move to malign Gujarat. People of the state need to be alert against such lies," he said after inaugurating Atul Limited's Rs 1,000-crore P-Cresol Chemicals Manufacturing plant.

"Those who level allegations now that Gujarat Government has been selling land for industrial development had, in fact, themselves sold fertile agricultural land up to Ankleshwar and Vapi in the past, depriving the farmers adequate compensation," Modi said in an apparent reference to Congress.

"On the contrary, he said, the present government (BJP) ensures (that) industrial development takes place in wastelands near sea coasts and Rann of Kutch. This has resulted in once backwards regions reaping the benefits of industrial development."